Forms of Organizations

Line Organization
Line organization is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom.

Features of Line Organization

It is the most simplest form of organization. Line of authority flows from top to bottom. Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres. This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern.

Line organization

Merits of Line Organization

Simplest Unity of Command Better discipline. Fixed responsibility Flexibility Prompt decision

Demerits of Line Organization

Over reliance Lack of specialization Inadequate communication Lack of Co-ordination Authority leadership

Functional organization
It has been divided to put the specialists in the top position throughout the enterprise. This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels. Functional authority remains confined to functional guidance to different departments. This helps in maintaining quality and uniformity of performance of different functions throughout the enterprise

Advantages Is logical and reflection of functions Follows principle of occupation specialisation Simplifies training Better control as the manger in charge of each functional department is usually an specialist.

Disadvantages Overspecialisation and narrow viewpoints of key personnel can limit the organisation growth. Reduced coordination between functions. Conflicts between different functions could be detrimental for the organisation as a whole. Difficult for general managers to coordinate different departments.

Line and Staff Organization

It is a combination of line and functional structures. In this organization a structure, the authority flows in a vertical line and get the help of staff specialist who are in advisory. When the line executives need advice, information about any specific area, these staff specialists are consulted. For example Chief accountant has command authority over accountants and clerks in the accounts departments but he has only advisory relationship with other departments like production or sales

Advantages Line managers are provided by expert advice by these specialists. Staff managers provide specialist advice which can improve quality of decisions in various departments. Disadvantages Line managers and staff managers might have conflicts on particular issues. Line and staff managers might not be clear as to what the actual area of operations is and what is expected of them. Co-ordination may be a problem. Staff personnel are not accountable for the results and thus may not take tasks seriously.